By Muskan Arora

The $139.9B State of Wisconsin Investment Board has
committed $200M to its US real estate sleeve through allocations in data
centers and apartments.

At its recent meeting, the pension plan disclosed a
commitment of $150M to Digital Realty DC Partners, a non-core fund and $50M to
FPA Core Plus Fund VI.

Digital Realty fund is a new relationship for the pension plan.

This is the second commitment to FPA in the past year, with
a previous allocation of $50M in October 2024.

FPA’s fund is focused on acquiring core-plus apartments
assets at a price which is below its replacement cost. The fund aims to raise
$1.25B, with a rate of return of 9% to 11%.

Furthermore, in the meeting documents, the pension plan disclosed
that it has two additional US real estate joint venture commitments in its pipeline
of $50M each.

One of the commitments targets non-core residential sector while
the other is focused on non-core industrial investments.

The pension plan returned 8.55% in 2024 and 11.40% in 2023.